Challenging the traditional ways to get paid
For many years small businesses have been neglected when it comes to payment technology, often having to choose between the slow process of bank transfers or paying high fees to accept card payments.
However, the rise of Open Banking has sparked a wave of innovation in the payments industry, particularly benefiting SMEs. In this article we explore the advantages of small businesses embracing Open Banking solutions like fumopay, as a new way to get paid.
Removing payer friction
High debtor days are a common challenge for small businesses across the UK, often leading to liquidity issues.
While several factors contribute to this widespread problem, one frequent cause of delayed payments is as simple as customers having to manually set up new payees, enter account details, and process invoices in their banking app. Although it seems like a minor inconvenience, in today's fast-paced world—where purchases on platforms like Amazon can be made with just a few clicks—such tasks are easily postponed, often leading to payment delays.
fumopay solves this issue by leveraging Open Banking technology, enabling direct bank-to-bank transfers with just a few clicks. No manual data entry is needed, making the process quick and seamless for customers. The result? Less hassle and faster payments.
Transaction fees & instant settlement of funds
Businesses that accept payments by credit card often face two main challenges: losing a portion of their invoice value to transaction fees and waiting for funds to clear before they reach their account.
With fumopay, these issues are resolved. Transactions are processed through Open Banking, resulting in instant, bank-to-bank payments, with funds deposited immediately.
Since there are no intermediaries, fumopay offers 0% transaction fees, allowing businesses to retain 100% of their invoice value.
Real world examples
The adoption of Open Banking by small businesses is on the rise, with many already using it for payments without even realising. If you've recently made an HMRC payment, chances are you’ve used Open Banking. So, if we’re using it to make payments, why not use it to collect them too?
Connolly Accountants and Business Advisors has made the switch, and Founder Declan Connolly shared his experience:
"We were actively searching for an alternative to credit card payments due to the high transaction fees. We discovered fumopay and switched our Xero online payment method. Over the past few months, our credit card transaction fees have significantly dropped, thanks to our clients paying via fumopay.”